Wind Creek targets Chicago casino
Wind Creek Hospitality, which recently acquired Sands Casino Resort Bethlehem, is now interested in developing a new Chicago casino.
US.- Wind Creek Hospitality wants to develop a casino outside Chicago. The company is seeking to score a licence to build a venue in the southern suburbs of the city.
Earlier this year, Wind Creek acquired Sands Casino Resort Bethlehem for US$1.3 billion. However, it seems it wasn’t enough for the company, which seeks to expand to the west.
The company wants to build on 24 acres in Homewood and East Hazel Crest, south of Chicago. According to the Daily Southtown, it would invest US$275 million in a 64,000-square-foot casino and further amenities.
The vote on the new Wind Creek’s Chicago casino will reach officials next week. They will vote on the proposal and decide whether to further expand gambling.
Recent report
Union Gaming Analytics conducted an analysis that says that the high tax and fee structure in the Illinois law would make the Chicago project “generally not financially feasible.”
The results would be the same regardless of where the casino is located.
After the findings, Mayor Lori Lightfoot talked about the implications. “While the study confirms our concerns about the tax structure that the legislature passed, we know this can be addressed. We look forward to working with the governor and legislative leaders to revise the legislation.”
The analysis from Union Gaming says the law features the highest effective gaming tax and fee structure in the country. The legislation, therefore, makes it difficult to finance a Chicago casino and generate profits.
Development costs would generate a 1% or 2% return annually, including licensing and other fees. The analysis says the return percentage isn’t “an acceptable rate of return for a casino developer on a greenfield project.”
